The Following Graph Depicts Demand

question 66

Multiple Choice

The following graph depicts demand. The price elasticity of demand at point C is:

• A)3/16.
• B)16/3.
• C)3/4.
• D)3/8.

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Definitions:

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than other competitors with the same quality.

Oil

A fossil fuel in liquid form, primarily used as a source of energy and as a base for petrochemicals, extracted from underground reservoirs.